CPAEAM study guide
CPAEAM · Work through your exam, one topic at a time.
The CPAEAM - the Certified Public Accountant Examination of the Philippines, commonly called the CPA Board Exam - is the licensure examination administered for candidates seeking the CPA title and the right to practise public accountancy in the Philippines. It is intended for graduates of accounting programs who have completed the academic and other prerequisites set by the regulatory authorities, and it is the gateway to signing audit reports, offering assurance services, and holding out as a CPA. The CPAEAM study guide has 7 sections and about 2,270 words.
01Financial Accounting and Reporting: Measurement, Recognition, and the Core Statements
Start with the objective of general purpose financial reporting and the qualitative characteristics: relevance and faithful representation as fundamental, comparability, verifiability, timeliness, and understandability as enhancing. Know the element definitions (asset, liability, equity, income, expense) and the recognition criteria.
338 words, about 2 min02Advanced Financial Accounting and Reporting: Consolidation, Foreign Currency, and Special Topics
Under PFRS 3, apply the acquisition method: identify the acquirer, determine the acquisition date, recognize and measure identifiable assets, liabilities, and non-controlling interest, and recognize goodwill or a bargain gain. Know both measurement choices for NCI: fair value (full goodwill) and proportionate share (partial goodwill).
329 words, about 2 min03Auditing and Assurance Principles: Framework, Ethics, and Risk
Understand the purpose of an audit: to obtain reasonable assurance about whether financial statements are free from material misstatement, enhancing the confidence of intended users. Know the inherent limitations of an audit (judgment, sampling, evidence being persuasive rather than conclusive) and the distinction between reasonable and limited assurance.
324 words, about 2 min04Auditing and Assurance: Concepts and Applications in the Engagement
Understand the flow of an audit engagement: client acceptance and continuance, engagement letter, planning, risk assessment, understanding internal control, designing responses, performing substantive procedures, evaluating misstatements, obtaining written representations, and issuing the report. Know the components: control environment, risk assessment, control activities, information and communication, and monitoring.
316 words, about 2 min05Taxation: Income Tax for Individuals and Corporations
Know the constitutional and statutory basis of taxation and the classification of taxes. For income tax, establish the taxpayer's classification, the source of income, and the applicable gross income tax or net income tax regime.
331 words, about 2 min06Regulatory Framework for Business Transactions: Corporation Code and Securities Rules
Know the attributes of a corporation: separate juridical personality, limited liability, transferability of shares, and centralized management. Distinguish stock from nonstock corporations, and de jure from de facto corporations.
303 words, about 2 min07Management Services: Cost Behavior, Decision Making, and Performance Measurement
Classify costs by behavior (fixed, variable, mixed), by traceability (direct, indirect), and by relevance for decisions (relevant, sunk, opportunity, avoidable). Apply the high-low method and regression for cost estimation.
329 words, about 2 min